SAS — Regulatory Filings 2016

May 4, 2016

SAS to retain ground handling operations at the main airports

SAS to retain ground handling operations at the main airports

In line with the letter of intent signed in September 2015, SAS and Aviator

Airport Alliance Europe AB (Aviator) have agreed to continue negotiations in

respect of the transfer of SAS Ground Handling's line stations in Gothenburg and

Malmö to Aviator. However, SAS has decided not to outsource ground handling at

the main airports of Copenhagen, Oslo, and Stockholm.

In September 2015, SAS signed a letter of intent with Aviator concerning the

transfer of ground handling at the main airports in Scandinavia and in

Gothenburg and Malmö. Following an analysis and evaluation of the offer, SAS and

Aviator have agreed only to finalize negotiations on the transfer of ground

handling operations at the airports in Gothenburg and Malmö, which is in line

with what SAS has done at other line stations in Scandinavia and worldwide.

SAS has decided to continue to operate ground handling at the main airports

itself. In recent years, SAS has implemented a large-scale streamlining program

within SAS Ground Handling and has outsourced a large proportion of the

business, which has reduced costs by around MSEK 300 over the past two years.

SAS and Aviator have concluded that the commercial criteria do not exist to

warrant a takeover of ground handling at the main airports. SAS digitalization

strategy will enable further streamlining and customer improvements to be made

within the sphere of ground operations, which the company considers can be best

achieved by itself.

Negotiations on ground handling in Malmö and Gothenburg are expected to be

completed during summer 2016.

SAS Investor Relations

SAS is publishing this information in accordance with the Swedish Securities

Market Act and/or the Swedish Financial Instruments Trading Act. This

information was submitted for publication on May 4, 2016, at 8 am.